Summary: There is a bullish divergence
in the 14-day Relative Strength Index oscillator
'Technically, we might be seeing some of the bullish divergence
(weakening selling momentum) take effect especially with the PSEi trading briefly in the green (Monday) morning,' Papa Securities said.
The stochastic is showing a bullish divergence
indicating downside momentum could be slowing.
Further, the Moving Average Convergence Divergence (MACD) could also see a bullish divergence
if the index moves higher this week.
Technically from yesterday's local bottom can bounce with great pleasure, good signals bullish divergence
on MACD, and RSI on "hourly" charts on clear evidence.
Abu Dhabi's benchmark, which closed at 2 450 on Wednesday, may target 2 462, with a bullish divergence
on the relative strength index, a commonly used price momentum indicator.
Also, although not a signal by itself, there is a bullish divergence
in 14-day Relative Strength Index (RSI) momentum oscillator.
The Stochastic, Oscillator has improved and a bullish divergence
has been created on the RSI suggesting a recovery trend ahead with 42,233 and 43,190 in sight.
At the recent low, Arbeter stated, the euro got extremely oversold from a weekly momentum standpoint, and traced out a bullish divergence
. In addition, market sentiment had gotten very bearish on the euro and very bullish on the U.S.
The 88.6 per cent retracement is a potential area of support, the 14-period weekly Relative Strength Index (RSI) momentum oscillator is showing a bullish divergence
(although this has been the case for a number of weeks), and the daily RSI has turned back up after falling into oversold territory earlier last week.